Kailash Wati Vs ITO (ITAT Delhi)
Gift from Husband Not Taxable: ITAT Delhi Deletes ₹12 Lakh Addition in Reassessment
The Delhi ITAT (SMC), in Kailash Wati v. ITO (ITA No. 7583/Del/2025, AY 2012-13; order dated 24.12.2025), has allowed the Assessee’s appeal and deleted the addition of ₹12 lakh treated as unexplained income in reassessment proceedings u/s 147.
The AO had treated a bank credit of ₹12 lakh received on 27.07.2011 as unexplained and brought it to tax, which was upheld by the NFAC.
Before the Tribunal, the Assessee produced evidence showing that the amount was received through bank transfer from her husband. The ITAT noted that a spouse squarely falls within the definition of “relative” under section 56(2)(vii)(e) as applicable to the relevant assessment year. Consequently, such a receipt is exempt from taxation and cannot be treated as unexplained income.
Finding no infirmity in the explanation offered by the Assessee, the Tribunal held that the addition was legally unsustainable and deleted it in toto.
Accordingly, the appeal was allowed in full, granting complete relief to the Assessee
FULL TEXT OF THE ORDER OF ITAT DELHI
This assessee’s appeal ITA no. 7583/Del/2025 for assessment year
2012-13 arises against CIT(A)/ NFAC, Delhi’s order dated 23.09.2024 (DIN & Order No. ITBA/NFAC/S/250/2024-25/1068979967(1), in proceedings u/s 147 of the Income-tax Act, 1961, hereinafter referred to as the ‘Act’.
